Which Regional Bank Stocks Among the Best to Buy? Three Names Approaching Historic Valuations

The Regional Banking Opportunity in 2026

The regional banking sector has quietly become an interesting space for investors seeking exposure to the best bank stocks to buy. While household names like Truist and Fifth Third dominate the conversation, the real story is happening elsewhere. Three standout performers—Citizens Financial Group (NYSE: CFG), East West Bancorp (NASDAQ: EWBC), and Wintrust Financial Corporation (NASDAQ: WTFC)—are trading near their historical peaks, each driven by distinctly different market dynamics.

Policy shifts, such as potential federal reclassification discussions, could reshape banking regulations and unlock new opportunities for regional institutions. Let’s explore why these three regional bank stocks merit attention for 2026.

Citizens Financial Group: Earnings Momentum as the Primary Driver

Among the best bank stocks to buy right now, Citizens Financial Group stands out for its exceptional earnings trajectory. The Rhode Island-based institution, which operates an extensive branch network across the Eastern and Midwestern United States, is trading at a forward P/E of approximately 12x—a valuation consistent with peers in the regional banking space.

What sets Citizens apart is Wall Street’s aggressive earnings forecast. Analysts project earnings per share will climb from $3.83 to $5.03 next year, representing over 31% growth. This expansion stems largely from an improving net interest margin environment. If current trends persist, the stock could deliver returns matching this earnings acceleration, with additional upside from potential valuation expansion if market sentiment strengthens.

At current valuations, Citizens appears reasonably priced relative to its growth profile, presenting a compelling case for growth-oriented investors.

East West Bancorp: Dividend Growth Reshapes the Narrative

East West Bancorp, headquartered in Pasadena, California, has evolved from its origins as a bank serving the Southern California Chinese-American community into a genuine regional powerhouse with operations spanning the West Coast, plus significant presence in China, Hong Kong, and Singapore.

The company trades at 13.6x forward earnings—higher than typical regional bank multiples—which normally would raise valuation concerns. However, East West’s transformation into a dividend growth story changes the calculus. The forward yield sits around 2%, but dividends have expanded at a 17% compound annual rate over five years. This aggressive capital return policy, combined with modest 6.7% projected earnings growth, suggests the market is pricing in sustained dividend acceleration. For income-focused investors, East West represents one of the best bank stocks to buy if dividend growth remains the strategic priority.

Wintrust Financial: Small Earnings Growth, Big Dividend Ambitions

The final piece of this regional banking puzzle is Wintrust Financial, based in Rosemont, Illinois, with operations spanning the Greater Chicago area and Southwest Florida. This bank operates in a different growth profile than its peers.

Wintrust faces the headwind of modest earnings growth, with projections calling for just 4.3% annual expansion. It trades at a reasonable 12x forward earnings. Yet the company has made aggressive dividend growth its cornerstone strategy. The forward yield of 1.4% masks the real story: quarterly dividends have grown 12.3% annually over the past five years.

Critically, Wintrust maintains an exceptionally low payout ratio of just 17.4%, indicating substantial capacity for future cash distributions. For investors seeking capital appreciation driven by consistent, rising dividend payouts, Wintrust could deliver outsized returns despite flat earnings, making it a candidate among the best bank stocks to buy for income growth-oriented portfolios.

The Path Forward

These three regional bank stocks each offer distinct investment theses within the best bank stocks to buy framework. Citizens Financial Group leverages earnings acceleration, East West Bancorp capitalizes on dividend expansion combined with growth potential, and Wintrust Financial relies on a disciplined dividend growth strategy to drive shareholder returns. As the regulatory environment potentially shifts toward favorable banking conditions, these names warrant close monitoring from investors seeking regional banking exposure.